This study investigates the performance-based ranking systems in competitive organisations. Existing literature has primarily concentrated on the implications of top-tier or bottom-tier rankings, while the simultaneous interplay among the broader population at other ranks has been largely ignored. We apply the network approach to reveal the complexities of rank transitions (n = 141,331) and their associated effects on performance. Our analysis reveals the relationships between multiple network properties and individual collective performance. Challenging the established ‘tournament theory’ in economics, we propose that an effective ranking system should allow individuals to align their contributions and efforts with the change in their rankings in the system. These findings introduce a perspective on the influence of ranking dynamics on the collective performance, highlighting the impact of rank changes on both individual participants and the overall effectiveness of the system.
Keywords: Ranking, tournament theory, competition, network.
(Writing up)